SLM Corp. (SLM+6.5%) is among the day's top gainers after Barron’s says shares of the student loan provider could climb as high as $20 in the next 18 months. Investors aren't giving Sallie Mae enough credit for its large government-backed loan portfolio, which is “virtually risk-free,” Andrew Bary writes. There’s also a possibility that a big bank could come calling, he says.

Citigroup (C) could announce a deal to unload its student-lending subsidiary, Student Loan Corp. (STU) as early as today. SLM (SLM) and one or two other student lenders are hammering out a $500-600M offer, sources say. Citi put a for-sale sign on STU by placing it in Citi Holdings, which holds assets Citi views as ancillary. STU +5.2% premarket. C +0.8%.

Sallie Mae (SLM) hires Goldman Sachs (GS) to advise on a potential sale or spinoff of its student-loan servicing business and its $145B government-subsidized loan portfolio, according to the NY Post, and considers the possibility of converting part of its platform into a traditional deposit-taking bank. SLM +5.2% premarket.

Sallie Mae (SLM) says it will cut thousands of jobs despite making new hires as part of moving its headquarters from Virginia to Delaware; earlier the student lender forecast cutting more than 2,500 of its 8,600 jobs.

SLM Corp is engaged in saving, planning and paying for education company. It provides funding, delivery & servicing support for education loans in the US through Federal Family Education Loan & non-federally guaranteed Private Education Loan Program.